BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 218


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          Date of Hearing:  April 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          218 (Melendez) - As Introduced February 2, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the California Transportation Commission  
          (CTC) to relinquish, to the County of Riverside, the portion of  
          State Route (SR) 74 in the unincorporated area east of the City  
          of Lake Elsinore and west of the City of Perris.








                                                                     AB 218


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          FISCAL EFFECT:


          1)Potentially significant one-time costs (State Highway Account  
            [SHA]) depending on the outcome of negotiations between  
            Caltrans and the County and a determination by Caltrans that  
            the relinquishment is in the best interest of the state.  (See  
            Comment #1)

          2)Significant long-term maintenance and repair savings to  
            Caltrans, if the CTC exercises its authority to relinquish the  
            highway segment.

          COMMENTS:


          1)Background. Legislation is required before any segment of  
            state highway can be relinquished to another governmental  
            entity.  Relinquishment provides the recipient agency with  
            more control over a local transportation project and relieves  
            Caltrans of any further responsibility to improve, maintain,  
            or repair infrastructure related to the relinquished segment  
            of state highway.

            According to Caltrans, in recent years the initial cost of  
            relinquishments has ranged from $0 to over $1 million per  
            centerline mile.  These costs are driven by a number of  
            factors, including roadway condition, projected maintenance  
            costs and any planned capital projects.

            The actual cost of a particular relinquishment is negotiated  
            directly with the local agency, but must be based on a  
            cost-benefit analysis using a 10-year analysis period.  Prior  
            to this analysis, the baseline cost is assumed to be $0.  All  
            proposed costs beyond the baseline are subject to review and  
            approval by the Department's Relinquishment Advisory Committee  
            to ensure statewide consistency in application of the  








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            established evaluation criteria.

          2)Purpose. In support of this bill, the Southwest California  
            Legislative Council notes that relinquishment of the specified  
            portion of SR 74 would allow the County to manage and maintain  
            the segment thereby reducing the state taxpayer burden as well  
            as allow for much needed maintenance improvements along the  
            route.
          3)Related Legislation. The administration is proposing budget  
            trailer bill language establishing an administrative process  
            for relinquishing state highways and requiring Caltrans to  
            report to the CTC biannually on which regional state highways  
            routes are the best candidates for relinquishment.



          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081